Q: I bought PHYS a year ago with all the Trump uncertainty going on (1st time buying gold ever), but knowing that it is not a long-term asset to hold, in my mind (difficult to forecast its trajectory). Now with interest rates and the US$ going up, gold is losing its shine, is there any reason to hold on? Thanks
5i Research Answer:
As 'insurance' we think gold still makes sense. If the war ends sooner rather than later, the reasons gold moved up will return. Governments are still not fiscally responsible, and currency debasement is the main attraction to gold. We would still be comfortable having some exposure, and would not try to pre-guess the market for gold. As always, though, we would manage position size to match one's goals, especially after its big move.